U.K. banks pressed over loan targets

By

Margot Patrick

Updated April 20, 2011 12:01 a.m. ET

LONDON—Partly state-owned Royal Bank of Scotland Group PLC and Lloyds Banking Group PLC should face government action if they fail to meet lending targets, a Parliamentary committee said in some of the sharpest criticism yet of the U.K.'s oversight of the two banks.

In remarks prepared for release Wednesday, Margaret Hodge, chairwoman of the House of Commons' Public Accounts Committee said the Treasury "appears to lack strong determination to use its influence to increase lending to small businesses" and that...